News

Dollar Soars along With Treasury Yields; Stock-Futures Pare Gains

USD

The dollar index, which measures the greenback against a basket of major currencies, extended upside rally to hit a one-month high of 99.83. The rush for liquidity is keeping the dollar in bid compared to other asset classes. The US Treasury yields recovered further where the US 10-year yields rose to 1.144%, and the US 30-year yields jumped to 1.808%. The EURUSD dropped to a three-week low of $1.0955, the GBPUSD declined to $1.20, the lowest since early September, and the AUDUSD plunged to 0.5933, the weakest since 2003.

Equities

Major US stock-index futures erased gains earned on prospects of a $1 trillion stimulus package by the White House. Equity benchmarks resumed downside move during the Asian session and hit limit down ahead of the European trading session. The Dow Jones Industrial Average futures dropped to 20160, the S&P500 futures declined to 2402, and Nasdaq futures tumbled to 7063.

Metals

Gold prices surrendered gains as the dollar surged along with US Treasury yields. The price of a gold ounce dipped to $1495 after rising to $1554, the price of a silver ounce drifted lower for the 9th consecutive day to trade at $12.23, while palladium futures hovered near $1500.

Oil

Oil prices plunged to their lowest levels since 2016 as the Coronavirus outbreak continued. The sluggish oil demand outlook due to stoppage of travel and lockdown weighed on prices. On the other hand, the price war between top oil producers magnified losses. The West Texas Intermediate crude futures dropped to $25.87, and Brent futures declined to $28.08.

Major Economic Events

GMT Country Event Expectation Previous

10:00

EZ

 CPI (YoY) (Feb)

1.2%

1.2%

10:00

EZ

 Trade Balance (Jan)

-

23.1

12:30

US

Building Permits (Feb)

1.500

1.550

12:30

US

Housing Starts (Feb)

1.500

1.567

12:30

CA

CPI (MoM) (Feb)

0.4%

0.3%

14:30

US

Crude Oil Inventories

3.256

7.664

21:45

NZ

GDP (QoQ) (Q4)

0.5%

0.7%

Disclaimer 

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